ITV snaps up UTV's television assets for £100million as the broadcaster continues acquisitions spree

Talksport owner UTV Media has agreed to sell its television assets to ITV for £100million in a move that gives the London South Bank-headquartered broadcaster a firm footing in Northern Ireland.

The deal excludes the Ulster-based firm's radio stations, which also include UTV Radio GB and UTV Radio Ireland, as well as its digital media businesses. UTV has operated in Northern Ireland since 1959 and launched a station in the Republic of Ireland in January - however the new Dublin station has struggled to find an audience.

If approved, ITV said the deal would further strengthen its free-to-air business and mean the broadcaster owns 13 of the 15 regional licences for the Channel 3 network.

Show biz: Patrick 'Pat' Kenny is a veteran Irish broadcaster, who currently hosts The Pat Kenny Show on Newstalk and Pat Kenny in the Round on UTV Ireland

ITV chief executive Adam Crozier said: 'We have a long-standing relationship with UTV, which has been the leading commercial broadcaster in Northern Ireland for many years thanks to its strong regional identity and blend of excellent local programming and strong network shows.'

'UTV Television's strategic objectives are closely aligned with our own and we are very pleased that they are joining the ITV family.'

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John McCann, chief executive of UTV Media, said: 'Becoming part of the ITV Family is by far the best way to take UTV's television business forward with an ongoing focus to provide brilliant television to viewers right across Ireland.'

ITV said the transaction would be financed through existing cash and debt facilities.

The deal needs approval from the UK and Irish broadcasting regulators and Ireland's competition watchdog.

Richard Huntingford, Chairman of UTV said: 'I believe that the price reflects the inherent value within the UTV Television business.

'ITV will be a good owner of the business and, with its scale and reach, will be able to accelerate the future growth of the business.'

UTV shares gained 5 per cent, or 8.5p to 182.0p on the deal in early trading.

Shares in blue chip ITV were down 0.5p at 248.2p, despite the deal receiving positive coverage from analysts in the City.

Liberum said in a note: 'We see the deal as a strategic plus, especially if ITV can charge retransmission revenues for the main channel where we expect more newsflow before Christmas. Reiterate as top pick in media sector.'

UTV Media's television assets achieved total revenue of £34.7million and operating profit of £6.6million in 2014.

However it is the radio stations which remain dominant and are responsible for about 60 per cent of UTV Media's revenue.

Some of Britain's best-known TV personalities began their careers at UTV, including Sky News anchor Eamonn Holmes, who started in 1979 by hosting a programme on farming.

Former UTV broadcaster-turned-leader of the Ulster Unionists, Mike Nesbitt, has warned Northern Ireland needs a strong local independent television station to offer competition to the BBC.

UTV Media first confirmed it was in talks to sell its television arm to ITV back in August.

The deal is the latest in a string of deals for ITV.

In June, the broadcaster snapped up Plymouth-based independent TV production company TwoFour and Mammoth Screen - which made the BBC’s recent Poldark adaptation.

And in April it was confirmed ITV was close to paying £630million for the TV division of The Weinstein Company, the production studio set up by veteran film and TV producer Harvey Weinstein and his brother Bob.

US telecoms and television giant Liberty Global - controlled by tycoon and chairman John Malone - recently increased its stake in ITV to 9.9 per cent, although it has said it still has no intention of taking over.

Liberty - owner of Virgin Media in the UK - initially bought a 6.4 per cent stake in ITV last year from satellite broadcaster Sky.

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ITV snaps up UTV's television assets for £100million as the London-based broadcaster continues is acquisitions spree